Black FridayUp to 80% OFF

SMC

Market Manipulations. Bullish Trap (Smart Money Concepts SMC) In the today's article, we will discuss how smart money manipulate the market with a bullish trap . In simple words, a bullish trap is a FALSE bullish signal created by big players. With a bullish trap, the smart money aims to: 1️⃣ Increase demand for an asset, encouraging the market participant to buy it. 2️⃣ Make sellers close their positions in a loss . When a short position is closed, it is automatically BOUGHT by the market. Take a look at a key horizontal resistance on AUDCHF. Many times in the past, the market dropped from that. For sellers, it is a perfect area to short from. Bullish violation of the underlined zone make sellers close their position in a loss and attracts buyers. Then the market suddenly starts falling heavily, revealing the presence of smart money. Both the sellers and the buyers lose their money because of the manipulation. There are 2 main reasons why the smart money manipulates the markets in a such a way: 1️⃣ - A big player is seeking to close a huge long position When a long position is closed, it is automatically SOLD to the market. In order to sell a huge position, smart money needs a counterpart who will buy their position. Triggering stop losses of sellers and creating a false demand, smart money sell their position partially to the crowd. 2️⃣ - A big player wants to open a huge short position But why the smart money can't just close their long position or open short without a manipulation? A big sell order placed by the institutional trader, closing their long position, can have an impact on the price of the asset. If the sell order is large enough, it can push the price downward as sellers outnumber buyers. Smart money are trying to balance the supply and demand on the market, hiding their presence. It is quite complicated for the newbies and even for experienced traders to recognize a bullish trap. One of the efficient ways is to apply multiple time frame analysis and price action. Remember, that most of the time bullish traps occur on key horizontal or vertical resistances. After you see a breakout, analyze lower time frames. Quite often, after a breakout, the market starts ranging . After a breakout of a key daily resistance, gold started to consolidate within a narrow range on an hourly time frame. Bearish breakout of the support of the range will indicate a strength of the sellers and a highly probable bullish trap. Remember, that you can not spot all the traps, and occasionally you will be fooled by smart money. However, with experience, you will learn to recognize common bullish traps. ❤️Please, support my work with like, thank you!❤️ I am part of Trade Nation's Influencer program and receive a monthly fee for using their TradingView charts in my analysis.
TRADENATION:XAUUSDEducation
by VasilyTrader
16
XAUUSD Chart Analysis – Smart Money Concepts (SMC) Based🔍 XAUUSD Chart Analysis – Smart Money Concepts (SMC) Based 1. Market Structure Overview: The chart clearly shows a bullish market structure forming after a sequence of Breaks of Structure (BOS) and Change of Character (CHoCH) events. The market has consistently made Higher Lows, indicating strength from the bulls and institutional order flow to the upside. 2. Key Zones Identified: ✅ Strong Support Zone (Demand Area): Around $3,260–$3,280, this level has been respected multiple times. It is marked with BOS, CHoCH, and a Bullish Fair Value Gap (FVG) indicating institutional accumulation and unfilled orders. The area also contains a Weak Low, which gives price a reason to stay above if bullish sentiment continues. ❌ Strong Resistance Zone (Supply Area): Around $3,420–$3,460, this area shows signs of Level Rejection and is labeled with Buy-Side Liquidity. This is where price previously reversed after grabbing liquidity—indicating distribution and possible shorting interest from smart money. 3. Liquidity Zones: Buy-Side Liquidity: Above recent swing highs near $3,420–$3,440. Price tapped this level and sharply rejected. Sell-Side Liquidity (Target Area): Currently aiming for the zone around $3,350, which aligns with a recent imbalance (FVG) and a clean liquidity pool below short-term higher lows. 4. Fair Value Gaps (FVGs): A Bullish FVG is seen mid-chart, where price was rapidly driven up, leaving a gap—price later returned to this zone, respected it, and pushed higher again. This is a strong sign of institutional entry and provides excellent long entries. 5. Trend Confirmation: BOS + CHoCH + Higher Lows = Bullish Bias. Each low is forming higher than the previous, with strong rejections from demand zones. 6. Entry & Target Insight: Entry Point: After price reacted from support and printed another Higher Low. Target: Currently price is targeting $3,350 (short-term retracement or pullback target). This target is likely an internal liquidity sweep before potential continuation to retest the resistance zone again. 7. Educational Takeaways: Market Structure is King: Observe BOS/CHoCH for directional bias. Liquidity Matters: Understand where liquidity is resting—price seeks it. FVG as Entry Tool: Fair Value Gaps provide high-probability trade setups when aligned with structure. Patience at Key Zones: Wait for confirmations at resistance/support rather than impulsive trades. ✅ Summary: Bias: Bullish, until structure breaks. Short-Term Target: $3,350 (as per the chart). Long-Term View: If price maintains higher lows, potential revisit to the resistance zone ($3,420–$3,460) is likely. Invalidation Level: Break and close below strong support ($3,260) would shift bias.
OANDA:XAUUSDShort
by Mentor_Michael03